India Eyes Autumn Deadline for Trade Pact with US Amid Trump’s Tariff Pause
India has confirmed that negotiations are underway to finalise a comprehensive bilateral trade agreement with the United States by autumn, even as President Donald Trump’s aggressive tariff regime continues to cause ripples across global markets.
The announcement came just hours before Trump paused the newly-imposed reciprocal tariffs for most countries for 90 days, while raising them to a staggering 125% for China. The move has opened a diplomatic window for India to push forward on trade negotiations without immediate economic retaliation.
Jaishankar: “Constructive Engagement Underway”
Speaking at a recent policy summit, External Affairs Minister S. Jaishankar said that India had engaged with the Trump administration early on to address trade tensions and lay the groundwork for a bilateral pact.
“We were open and constructive, and so were they. We agreed to try and conclude a trade agreement by fall of this year,” Jaishankar said.
He also highlighted that India is possibly the only country in Trump’s second term to have reached such an understanding in principle, underscoring the strategic economic significance of Indo-US relations in the current geopolitical climate.
Trump’s Remarks Trigger Reactions – But India Stays Focused
Trump, at a Republican fundraising dinner, made controversial remarks, claiming world leaders were “dying to make a deal” and would do anything to secure one with the US.
“These countries are calling us up, kissing my… They’re begging for a deal,” he said, in typical Trump fashion.
Asked about Trump’s language, MEA spokesperson Randhir Jaiswal refrained from reacting, instead stating that India is focused on stakeholder feedback and constructive engagement with Washington.
“We are examining the implications of US tariff actions and listening to industry and exporters,” Jaiswal said.
Tariff Timeline: The Road So Far
- April 5: Baseline 10% tariffs applied to all countries
- April 9: 27% reciprocal tariffs kicked in
- Trump paused reciprocal tariffs for most countries on April 9
- India gets a 90-day breather, amid continuing talks
Background & What’s at Stake
Negotiations were formally launched after PM Narendra Modi’s meeting with Trump in Washington this February. The deal is expected to cover:
- Market access for US goods in India
- Tariff reductions on Indian exports
- Potential digital trade and IP protection agreements
- Agriculture, pharmaceuticals, and services
EAM Jaishankar also confirmed that he had spoken to US Secretary of State Marco Rubio on April 7, where both sides emphasised the need to conclude the trade pact quickly.
Kaizer Take:
India’s diplomatic tone is calm but calculated, looking to extract economic advantage while avoiding friction with Trump’s tariff-first approach. With China now facing 125% tariffs, India may find itself with leverage — if it plays its cards right in Washington.
